South Africa makes Bitcoin a financial product 🇿🇦

[Renampun]

https://twitter.com/BitcoinMagazine/status/1582783286673174528

The notice defines a crypto asset as a “digital representation of value” that is not issued by a central bank but can be traded, transferred or stored electronically “for the purpose of payment, investment and other forms of utility.”

https://www.coindesk.com/policy/2022/10/19/south-africa-classifies-crypto-assets-as-financial-products/

their government has done a long study to formalize this regulation!

"Our view has changed and we now regard it [cryptocurrency] as a financial asset and we hope to regulate it as a financial asset," he said at a PSG Think Big webinar. "There has been a lot of money that has flowed in, and there is a need to regulate it and bring it into the mainstream."

"Once the ministers amend schedule one of the FIC (Financial Intelligence Centre) act, then we can begin to move. It will probably still take us around 12 to 18 months to get all of our ducks in a row, get everything in place. But I don't think that this has to happen in a big bang. I think we can start to have some KYC rules. We can start to license exchanges," Naidoo said.

https://www.coindesk.com/policy/2022/07/13/south-african-central-bank-reverses-course-on-crypto-regulation/

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[Dunamisx]

The emphasis here is on crypto and not bitcoin and I don't see anything new that could serve as a trending news here than only recognizing crypto for unit of digital and financial product and no single place where bitcoin was mentioned and these makes this topic more fitted on economics or altcoins discussion board for appropriation, it could have make more interesting sense if it were to be bitcoin been declared as asset of financial products than alts.

[Dr.Bitcoin_Strange]

no single place where bitcoin was mentioned and these makes this topic more fitted on economics

OP, according to Dunamisx, I also suggest you move this thread to Economics.

https://www.coindesk.com/policy/2022/07/13/south-african-central-bank-reverses-course-on-crypto-regulation/
"Our view has changed and we now regard it [cryptocurrencyas] a financial asset and we hope to regulate it as a financial asset," he said at a PSG Think Big webinar. "There has been a lot of money that has flowed in, and there is a need to regulate it and bring it into the mainstream."
Regulations, he said, could take 12 to 18 months, but some know-your-customer (KYC) rules and licenses for exchanges can be implemented earlier.

From your source link, Kuben Naidoo, the Deputy Governor of the South African Reserve Bank, clearly talked about regulation band and KYC on cryptocurrencies, which in no way refer to Bitcoin. I believe they are referring to some altcoins or fiat currency 

[stompix]

It's nice on the recognition but the way some of them phrased this sounds less thrilling
https://cointelegraph.com/news/south-africa-declares-crypto-to-be-a-financial-product-subject-to-financial-services-law

The declaration marks the beginning of the long-awaited process of regulating crypto assets, which will produce benefits such as consumer protection and AML/KYC compliance.

Consumer protection(which I do wonder how will work) vs  AML, KYC and taxes, not quite the balance one was looking nut it was inevitable, sooner or later every single country will take this approach under different names.

Also, I do hope they will do amendments because if they just classify these as financial products and include them in the 2002 act then mean the articles from that law will apply to crypto also making every trader, wallet provider, or exchange a financial services provider and that will mean a ton of regulation which I doubt anyone is keen on taking.

Under the FAIS, a financial product is defined as a security, debenture, “any money-making instrument” or an instrument conferring rights to securities and instruments. It can be offered by financial service providers, whether they are domestic or international firms, that are licensed in South Africa. Registration can be “an onerous procedure,” according to the local press.

[DapanasFruit]

While there can be here who don't look at this news to be encouraging...first let's compare it to what happened in China where total ban has been in effect for many years now and this would surely be a lot better. Regulations of cryptocurrency, of course, involves some give and take process all because this is an act by the government to be making something legal but at the same time there are going to be processes in place as a compromise. As for me, we don't have the choice because individually we can never obliterate the power of the state to impose legal procedures and requirements...however am sure there can be some platforms that can still be serving the people without the need for KYC and AML procedures so there remains to be some choices available. In addition, though there is no specific reference for Bitcoin in the said ACT above, the term used is cryptocurrency...and is Bitcoin not cryptocurrency?

[Flexystar]

At least they are working on the chronology of its acceptance. For any government considering volatile asset like crypto as legal one to trade through their notices is always challenging. One mistake and people can start its misuse and when it comes to jurisdiction they can have way out through their misleading acts. Let us not go hard on them since they are trying to accept it with most viable way possible and putting the amendments as and when required for use of crypto currencies. If it becomes casual over the period of time then people will enjoy it and world will keep motivated.

[Kakmakr]

Well, South Africa makes provision in their tax returns for people to declare Crypto currency income as Capital gain. So they still see it as a Commodity and not neccesarilly as legal tender. When a government accept Bitcoin or Crypto currency as a currency, then VAT will be added to those transactions and declared as a income.

I know for a fact that one of the sons of that President are into Crypto currencies, so it might explain why their government are so open-minded about Crypto currencies. 

[Agbe]

The emphasis here is on crypto and not bitcoin and I don't see anything new that could serve as a trending news here than only recognizing crypto for unit of digital and financial product and no single place where bitcoin was mentioned and these makes this topic more fitted on economics or altcoins discussion board for appropriation, it could have make more interesting sense if it were to be bitcoin been declared as asset of financial products than alts.

One thing I come to understand nowadays is that when Cryptocurrencies is mention, bitcoin must be there, in fact sometimes they used it to refer only to bitcoin. Most time countries used the term Cryptocurrency which in their mind it is bitcoin but since it is a national affair they used cryptocurrency so they can also use others Currenciee but bitcoin is in the front banner.
If South Africa Uses cryptocurrency as a financial product that is a good move, everything must come gradually. They have to start it like this then present it to the public for public opinion then general adoption will take place. Adoption of bitcoin has a rigorous process.
Bitcoin is the KING of all Cryptocurrencies so there is no way country talks about cryptocurrency without bitcoin.

[hugeblack]

Building analyzes on mere speculation for a period of 12 to 18 months would be considered a waste of time because a lot of things and variables will happen during this long period, and unless the bill is changed into a law and put into effect then only we can talk about the positive effects.

Personally, I see that many countries are planning to expand the tax umbrella, and therefore every “regulation of cryptocurrencies is a new way to impose taxes"

[avikz]

It's a great step towards mainstream inclusion of cryptocurrency. I congratulate South Africa for not taking drastic steps like El-Salvador and kept their foot and ambition to the ground while studying about it.

This is what we need in reality. We don't need to replace fiat or banking system. We just need the crypto to be accepted as a 'store of value' and a 'legal tender'.

[Bitstar_coin]

Some how btc is gaining grounds, not just any ground but from the government sector as well, what many people thought would not come easily we are seeing it happening stage by stage, the government from various countries are beginning to come to terms with the fact that btc is here to stay, people are not ready to back down from using it or having it as an asset.
We are in the beginning of the first phase of adoption, and i believe more of such news will keep coming. Btc is on the Guinness world record, definitely something that will attract more attention.

[stompix]

Building analyzes on mere speculation for a period of 12 to 18 months would be considered a waste of time because a lot of things and variables will happen during this long period, and unless the bill is changed into a law and put into effect then only we can talk about the positive effects.

It's not a bill, it's an amendment to an already voted constitutional act (law) so any amendment that gets published takes effect, seems like the law process in South Africa still resembles quite a lot the one in Europe, so this is already a done business.
If you talk about modifying the main act, the Finacial Act of 2002 to give them special status among financial products, that's not going to happen, not even in 18 months, but for now, that's it cryptocurrencies are financial products and everyone that deals with them will have to comply with, starting...yesterday  !

[YOSHIE]

I want to ask about your opinion, is this good for the future of Bitcoin and its users there or is it not?

I've read and seen about Africa declaring this about crypto assets.

They say: South Africa Classifies Crypto Assets as Financial Products.

The notice defines a crypto asset as a “digital representation of value” that is not issued by a central bank but can be traded, transferred or stored electronically “for the purpose of payment, investment and other forms of utility.”

If they/Africa really do, of course my understanding despite different title and same goal I think El Salvador has done it.
• El Salvador becomes world's first country to make Bitcoin an official currency.

I have an understanding of Bitcoin, what El Salvador has been and is doing, as far as I know Bitcoin remains as usual, developments based on market, no changes, despite all the rules and policies of Bitcoin or finance they want to do in the future, that is because Bitcoin is not only used in Africa, the world speaks.

[Renampun]

no single place where bitcoin was mentioned and these makes this topic more fitted on economics

OP, according to Dunamisx, I also suggest you move this thread to Economics.

...

From your source link, Kuben Naidoo, the Deputy Governor of the South African Reserve Bank, clearly talked about regulation band and KYC on cryptocurrencies, which in no way refer to Bitcoin. I believe they are referring to some altcoins or fiat currency 

I have considered for a long time in which thread I should put this but I think this is more suitable for the Bitcoin section because Bitcoin is the number 1 cryptocurrency in the world.
what I want to discuss here is the South African government made rules that aim to control all cryptocurrency users, get taxes from it and try to control it which is actually a bit contrary to satoshi's goal of creating bitcoin, it is a decentralized cryptocurrency and not burden the person who uses it.

Well, South Africa makes provision in their tax returns for people to declare Crypto currency income as Capital gain. So they still see it as a Commodity and not neccesarilly as legal tender. When a government accept Bitcoin or Crypto currency as a currency, then VAT will be added to those transactions and declared as a income.

I know for a fact that one of the sons of that President are into Crypto currencies, so it might explain why their government are so open-minded about Crypto currencies. 

they tax supposedly on centralized assets like stocks but Bitcoin is a decentralized asset, what do they protect users from? bitcoin is the safest in the world, no scam.

Building analyzes on mere speculation for a period of 12 to 18 months would be considered a waste of time because a lot of things and variables will happen during this long period, and unless the bill is changed into a law and put into effect then only we can talk about the positive effects.

It's not a bill, it's an amendment to an already voted constitutional act (law) so any amendment that gets published takes effect, seems like the law process in South Africa still resembles quite a lot the one in Europe, so this is already a done business.
If you talk about modifying the main act, the Finacial Act of 2002 to give them special status among financial products, that's not going to happen, not even in 18 months, but for now, that's it cryptocurrencies are financial products and everyone that deals with them will have to comply with, starting...yesterday  !

thank you, your words are very true.

[Die_empty]

I want to ask about your opinion, is this good for the future of Bitcoin and its users there or is it not?

Anything that gives bitcoin good publicity would definitely be good for it. At least the government of South Africa has recognized the importance of Bitcoin and others which is why it has to amend its existing law to give them legal backing. Although they might have some unpleasant intentions such as taxation, disrespect for privacy, and others nevertheless the news is a good one.

With this legal recognition and backing companies or individuals can now use bitcoin as securities to access loans, and mortgage funds, and enjoy other financial privileges because it is no longer a legal alien.

[Dunamisx]

The emphasis here is on crypto and not bitcoin and I don't see anything new that could serve as a trending news here than only recognizing crypto for unit of digital and financial product and no single place where bitcoin was mentioned and these makes this topic more fitted on economics or altcoins discussion board for appropriation, it could have make more interesting sense if it were to be bitcoin been declared as asset of financial products than alts.

One thing I come to understand nowadays is that when Cryptocurrencies is mention, bitcoin must be there, in fact sometimes they used it to refer only to bitcoin. Most time countries used the term Cryptocurrency which in their mind it is bitcoin but since it is a national affair they used cryptocurrency so they can also use others Currenciee but bitcoin is in the front banner.
If South Africa Uses cryptocurrency as a financial product that is a good move, everything must come gradually. They have to start it like this then present it to the public for public opinion then general adoption will take place. Adoption of bitcoin has a rigorous process.
Bitcoin is the KING of all Cryptocurrencies so there is no way country talks about cryptocurrency without bitcoin.

I really understand your point as well here mate, but come to think of it this way, many that have been using the term crypto which covers all digital currency both centralized and decentralized in the case of bitcoin and altcoins, what you later see as the end result is that they developed their own centralized digital tokens and not bitcoin and a good example is with Central African Republic, it adopted bitcoin fine and good but part of it Sango project is also introduced was Sango token which to me does not make sense when bitcoin is there, El-Savador never thought of introducing anything aside bitcoin it adopted, that's why when you're talking about cryptocurrency in general, it is very important to specify bitcoin else bitcoin will be treated the same way as other cryptocurrencies which most are shitty.